Due to a number of off-plan releases, Dubai apartment sales soared in the fourth quarter of 2022, increasing 164% year over year.
According to Morgans Realty, overall real estate sales in the emirate rose 65% annually and 15% quarterly in Q4. Despite rising interest rates, the broker noted in an analyst’s note that mortgage activity had increased by 2% quarter over quarter.
According to the note, the emirate recorded 97,252 real estate transactions of AED 265 billion ($72 billion) in 2022, an increase of 59.5% from 2021.
Apartment sales made up 69% of all transactions during the quarter, with a 6% QoQ increase in price per square foot, an increase of 18% YoY, and a 28% QoQ increase in transaction volume.
According to Morgan’s International Realty, 58.5% of all apartment transactions were off-plan.
Elias Hannoush, managing director, said: “While we remain positive about the stability of the Dubai market and foresee continued expansion, developers and investors will need to carry the lessons of previous market cycles in mind.
“The current expansion of the market cannot continue forever. Large gains are likely over for the foreseeable future, and several months of price stability with small price increases are predicted.”